Auto dealers are backing the bills in an attempt to uphold current sales models

Tesla Motors may see its stores banned in New York thanks to a pair of bills that look to protect auto dealers.

Tesla has its own “Tesla Stores”, which act as showrooms for customers. There, they can see the models and even test drive them before making a purchase online from the Tesla website. Tesla does this as opposed to selling its vehicles to auto dealerships.

But a new pair of bills, referred to as A07844 in the Assembly and S05725, may put an end to that in the state of New York. The bills would make it illegal to license -- or even renew licenses -- for all Tesla Stores within New York state borders.

In addition to a ban on renewing licenses for existing Tesla sites, the bills also make it illegal to license any future stores; amends New York's vehicle and traffic laws regarding "unfair practices by franchisors," and prevents New York from issuing/renewing the registration of any car dealer where a manufacturer holds a controlling interest (unless that certificate was issued before July 1, 2006).

The bills were submitted just before the New York Legislature adjourned for the summer. This means that they will sit in the New York State Assembly until January 2014 when it returns. No decisions were made regarding the bills before it adjourned.

As you can probably guess, Tesla isn't too happy about this. The electric automaker issued a statement last week regarding the bills:

The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace, and Tesla will be put out of business in New York. The result would be that all of Tesla’s New York employees will lose their jobs. It means that New York-based suppliers to Tesla will lose business and New York consumers cannot buy the most advanced electric car in the world today. Banning Tesla from selling its vehicles is also a step in the wrong direction for reducing carbon vehicle emissions and the green environmental movement in New York. With the State of New York pushing so hard to lead green innovation supporting entire agencies for energy efficiency like NYSERDA, it is absolutely defies logic to ban Tesla from selling electric cars in New York.

From the beginning, Tesla’s goal has been to catalyze the market for electric vehicles and selling through intermediaries at this stage of the company will not work. For Auto Dealer Associations to claim that restricting competition is in the best interests of the public is wrong and defies obvious common sense. If we are kept out of New York, it forestalls progress and defeats innovation.

Tesla has created jobs in New York at both its stores and service centers and the sales of its vehicles go into supporting the local economy. Tesla remains committed to bringing electric vehicle technology and its customer focused sales and ownership experience to New York consumers, while complying with all local and state laws.

Back in April of this year, Tesla CEO Elon Musk openly fought for a Texas bill that would cut out the use of auto dealerships. The bill -- House Bill 3351 -- would allow distributors and manufacturers of electric vehicles (EVs) only to sell directly to customers without the use of dealerships. The bill was filed by Rep. Eddie Rodriguez (D-Austin).

Musk even said that if the fight for the Texas bill came down to a federal matter, he would either lobby Congress to pass legislation for the direct sales of EVs made by startup companies like Tesla (and tie it to an energy or transportation bill) or file a federal lawsuit to fight the state restrictions as unconstitutional violations of interstate commerce.

Musk is open to a dealership model at some point when sales increase, since dealerships do promote competition and keep prices down.

I've just got to wonder why, at every level of government (from school boards up to the Federal level), this kind of stuff keeps on happening. In this particular case, why didn't the sponsors of the bills look at themselves in mirrors and ask:

"What's it to me (and the government) if someone wants to sell cars without dealerships and people want to buy them that way? This isn't 1908 anymore. There are all kinds of people and organizations that test cars and publish the results. There are all kinds of information outlets that will let people compare and contrast the cars and prices. And, there's that thing Al Gore invented, called the internet, where anyone can find more information than they could possible use on these things. Do I really need those "perks" and "contributions" the other car companies, dealerships and labor unions are offering me? Is this worth my integrity, honor, and soul? Is it worth the rule of law?"

And, even if the sponsors fails to ask themselves that question (or get the answer wrong), what about all the others in that house of government? Assuming it gets through that house (and assuming NY is bicameral), why don't the members of the other house ask that? If it gets through that, why doesn't the governor ask himself that? If it get through that, why don't the courts ask themselves that?

This stuff seems to happen all the time. Is there no one in government who isn't in it just for the bribes and the power? Do none of these people look at the various constitutions to see what they're supposed to be doing and how they're supposed to be limited? Why are they never held accountable? Not only are they never impeached (or whatever) and thrown out of office for abuse of power, their constituents keep sending them back for more. Is that chicken in every pot worth their freedom? Why does the press not hound the originators and signers of these bills like they do some random football player who might have killed his girl friend? Why aren't they swarming all over them like flies on poo every time they stick their noses out of their houses?

Because WE (the royal We) don't like change and we'll defend the old way to the death even if we hate it. Listen to all the Win8 hate. That is EXACT same reason why NY (and Texas and probably every other state) wants to keep the dealership model.

"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis